A Massachusetts hashish retailer difficult the levy of tens of millions of {dollars} in municipal “group impression charges” owes the state greater than $400,000 in gross sales taxes.
Rebelle, which has retailers in Boston and Nice Barrington, owes greater than $424,000 in again taxes, prompting the state’s income division to try to recuperate the debt by means of property seizures, Masslive.com reported, citing courtroom paperwork.
The state secured a financial institution levy on Rebelle’s accounts however did not safe money, based on a lawsuit obtained by Masslive.com that lists Rebelle and its dad or mum, Neighborhood Progress Companions Nice Barrington Operations, as defendants.
Rebelle and two different marijuana operators – Farnsworth Nice Hashish and Concept Wellness – filed a lawsuit in March 2024 towards Nice Barrington over “group impression charges” levied as a part of their host group agreements (HCAs) with the city.
The grievance seeks nearly $6 million in damages.
HCAs enable Massachusetts municipalities to extract charges from marijuana operators inside their borders – on high of native taxes – to offset potential prices to manage and regulate the companies.
A authorized precedent has been established in Massachusetts to recoup some HCA charges.
In January 2024, the city of Uxbridge reached a $1.2 million settlement with a marijuana retailer that had filed a lawsuit arguing the city did not justify the charges.
